Is Globalization Succumbing to Glocalization?

When it comes to retail, globalization does not always work as planned. For example, in South Korea, shoppers disdain the American Wal-Mart, yet love E-Mart, a Korean-owned store with all the accoutrements of a sophisticated US store. “Glocalization” – the term that describes the combination of “global standards and local preferences” – is a tempting label to describe why Wal-Mart, the world’s largest retailer, has failed in South Korea. The competition between the two retailers, and attendant losses suffered by the multinational Wal-Mart, took place with both companies aiming to reflect a foreign style. But local preferences often emerge despite international market dynamics, and the local preference that came into play in Korea was shoppers’ dislike for warehouse stores and appreciation of “department store” quality. – YaleGlobal